Overview

Bond issuance by UK firms has in the past concentrated on the largest corporates. Most other UK firms have historically relied predominantly on banks to meet their borrowing needs. However, 2009 witnessed a surge in corporate bond issuance, a trend which has continued in the current year.

A key driver of this trend is a shift by traditional users of the bank loan market to the bond market, mainly as part of a refinancing strategy. A reduction to the availability of traditional bank credit, post crisis, and the “wall of corporate debt” - estimated to be some £159.9bn between 2010 and 2012 - which corporates will need to refinance, means that corporates will need to utilise a wider variety of funding techniques to access the capital they require.

As Norton Rose reports, clients are increasingly considering accessing the Eurobond market.

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